National Fund for Environmental Protection and Water Management. activities in climate protection

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1 National Fund for Environmental Protection and Water Management activities in climate protection National Fund for Environmental Protection and Water Management Witold Retke Head of Green Investment Scheme Unit Climate Protection Department Koln, May 27nd, 2010

2 Plan of the presentation NFEP and climate protection Schedule of GIS implementation GIS Priority programs Monitoring requirements Greening Plan

3 NFEP and climate protection NFEP is a state legal person established under the Environmental Protection Law (1989) One of the main focus improvement of the energy efficiency and air protection (including renewable energy) 21 years of experience Average disbursement of EUR 1-2 billion per year

4 NFEP and climate protection state of play Activities financed from own NFEP financial resources 3 priority programs for renewable energy with total budget of EUR 500 million Forms of co-financing soft loans for beneficiaries based on WIBOR for intermediaries 1% per year grants (solar systems) for private households up to 45% of the principal

5 NFEP and climate protection state of play EU funded programs (1/3) Highly efficient energy generation of energy Construction and modernization of heat or power generation facilities with fulfillment of highly efficient co-generation Budget of EUR 71 millions Grants amount dependant on the Staid Aid rules

6 NFEP and climate protection state of play EU funded programs (2/3) Improvement of energy distribution efficiency Reduction of power and heat network losses Budget of EUR 139 millions Grants amount dependant on the Staid Aid rules

7 NFEP and climate protection state of play EU funded programs (3/3) Improvement of energy efficiency of public buildings Reduction of power and heat network losses Budget of EUR 76 millions Grants amount dependant on the Staid Aid rules

8 GIS implementation - schedule Four AAU Pruchase Agreements already signed First call for applications June 2010 Implementation period depending on the conditions of the AAUPA Monitoring period during the period of sustainability specified in the AAUPA

9 Scope of activities under Polish Green Investment Scheme Polish GIS allows for realization of several types of activities: Hard greening, including: energy efficiency renewable energy biofuels Soft greening forestry and land management research and development education

10 GIS priority programs Among types eligible for financing from the GIS, Poland set five priorities: energy management in public buildings biomass fired power plants agricultural biogas plants upgrading electricity grid for connecting renewable wind energy sources energy efficiency in district heating and co-generation Types highlighted in green has been selected for realization under signed AAUPA.

11 Energy management in public buildings (1/2) Beneficiaries: Self-governments and self-government unions Entities providing public services within scope of services to be provided self-governments, but not enterprises Member units of Voluntary Fire Brigades union Higher schools and research institutes Public and private health care units NGOs, (including churches) churches, providing health care services in the areas of health prevention, rehabilitation and social care.

12 Energy management in public buildings (1/2) Types of projects: Replacement of current systems installed in buildings covered by project with the highest, economically justified, energy effective systems including: Insulating the building walls Replacing the windows and external doors Conversion of the heating system Replacement of ventilation and air-conditioning systems; Energy management systems in the buildings; Renewable energy sources Additionally replacing light with energy saving appliances Minimum total cost PLN 10 million (ca. EUR 2,5 million)

13 Biomass fired power plants Beneficiaries: entities carrying projects for construction of facilities fired by biomass mainly private entities but can be also public institutions Types of projects: construction of facilities fired by biomass for generation of heat or heat and power (dispersed sources of nominal thermal capacity below 20 MWt). minimum total cost of the project PLN (ca. EUR )

14 Agricultural biogas plants Beneficiaries: entities carrying project for generation of biogas for production of power (and heat) or for introduction of the cleaned biogas in the gas distribution network only private companies Types of projects: construction of power or power and heat production facilities using agricultural biogas building and/or modernization of installations producing agricultural biogas with the purpose for introduction to the gas distribution network minimum total cost of the project PLN (app EUR 2,5 M)

15 Upgrading electricity grid for connecting renewable wind energy sources (1/2) Beneficiaries: entities carrying out projects within the scope of efficient transmission and distribution of electric energy only private companies Types of projects: projects concerning the construction, expansion and/or modernization of electricity networks to enable facilities producing renewable energy from wind to be connected to the National Electricity Grid including, among others, the following tasks:

16 Upgrading electricity grid for connecting renewable wind energy sources (2/2) providing connections of renewable sources of energy from wind (transformer, section of cables from energy source to the power engineering station) expansion of the 110 kv station by adding fields (feeder bay, cables and transformers), overall upgrade of measurements and IT expansion of the 110 kv network overhead lines or strengthening the existing ones by changing the wiring, adding a second circuit interconnection between 110 kv stations, and between these and the transport network (220kV or 400kV) building new sections for overhead and cable networks building a new, fully-equipped station for 110 kv additionally: building reserve sources of electricity to stabilize networks powered by intermittent renewable sources of energy

17 Energy efficiency in district heating and co-generation (1/2) Beneficiaries: entities carrying out projects within the scope of transmission and distribution of heat energy mainly private companies (owned usually by self-governements) Types of projects: total cost between PLN 10 and 180 million (EUR 2,5 45 million) construction, expansion and/or modernization of heat management systems including heat sources and or heat transmission and distribution networks to reduce the loss of energy, through:

18 Energy efficiency in district heating and co-generation (2/2) Construction, expansion and/or modernization of facilities producing heat energy with high efficiency cogeneration. Modernizing the existing network, together with its expansion/conversion and optimization; Phasing out group sub-stations and building individual sub-stations; Supervising he work of the network and sub-stations with the use of telemetry; Connecting new end users to the network; Development of installation for hot piped water in the buildings supplied by district heating systems.

19 Procurement Rules All beneficiaries will be obliged to employ supplier of equipment applying the principles of: transparency equal treatment fair competition through applying of written procedure during all steps of a tender and using of tender rules prescribed in the Civil Law (auction or tender). But there is an issue of the Public Procurement Law (national and EU level).

20 Procurement Law Public procurement Law, and public tender with publication of tender in the national procurement bulletin or EU Official Journal has to be applied if following conditions are met jointly: share of public funds in the total cost of works under a tender is higher than 50% total cost of works under a tender is above EUR (in case of supplies and services: EUR ) type of works is within land or water engineering.

21 Monitoring requirements - beneficiaries During realization of the investment every half a year report on disbursement of the co-funding every half a year report on progress in implementation After realization during sustainability period yearly reports on achieved environmental effect reports from the independent verifier after verification of the monitoring report monitoring of the environement effect is to be conducted in accordance to the methodologies prepared by the National Fund, based on the JI/CDM methodologies

22 Monitoring requirements - National Fund Yearly financial reports from management of the funds collected on the Climate Account with audit report Yearly reports on implementation of the Greening Activities and achieved environmental effect with report from the verifier Both reports will be submitted to the Minister of the Environment and to the Buyer.

23 Greening plan Integral part of the AAUPA Detailes of the Greening Program chosen for co-financing Detailes for monitoring and reporting requirements to the Buyer

24 Thank you for your attention Witold Retke Head of Green Investment Scheme Unit Climate Protection Department